Thursday, February 28, 2013
Jordan M. Barry
(San Diego) & Janelle N. Darnell
(J.D. 2013, San Diego), Explanation of Issues in PPL v. Commissioner, ABA Preview of U.S. Supreme Court Cases, Vol. 40, Issue 5, pp. 201-04, 2013:
This short article briefly summarizes the chief arguments of PPL corporation and the IRS as to whether the United Kingdom's Windfall Tax qualifies for a United States foreign income tax credit under § 901. PPL argues that the Windfall Tax is a tax on income and that PPL is therefore entitled to a foreign tax credit that will greatly reduce its federal income tax liability. The IRS argues that the Windfall Tax is a tax on value and, accordingly, that PPL is not entitled to a foreign tax credit. This case could have major implications for U.S. corporations, which claim over $100 billion in foreign tax credits each year.
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